Notice: Payments for answers will end 4/10/2017. Click for more info.
You have new items in your feed. Click to view.
Question and answer
Q: If the inflation rate in 1996 was tripled and the house price index was only affected by inflation, what would be the House Price Index Outside the Capital starting in 1997?
A: Hyperinflation occurs when there is a continuing (and often accelerating) rapid increase in the amount of money that is not supported by a corresponding growth in the output of goods and services. The price increases that result from the rapid [ money creation creates a vicious circle, requiring ever growing amounts of new money creation to fund government activities. Hence both monetary
inflation and price inflation proceed at a rapid pace. Such rapidly increasing prices cause widespread unwillingness of the local population to hold the local currency as it rapidly loses its buying power. Instead they quickly spend any money they receive, which increases the velocity of money flow; this in turn causes further acceleration in prices.[6] This results in an imbalance between the supply and demand for the money (including currency and bank deposits), causing rapid inflation. Very high inflation rates can result in a loss of confidence in the currency, similar to a bank run. Usually, the excessive money supply growth results from the government being either unable or unwilling to fully finance the government budget through taxation or borrowing, and instead it finances the government budget deficit through the printing of money.[7] Governments have sometimes resorted to excessively loose monetary policy, as it allows a government to devalue its debts and reduce (or avoid) a tax increase. Inflation is effectively a regressive tax on the users of money,[8] but less overt than levied taxes and is therefore harder to understand by ordinary citizens. Inflation can obscure quantitative assessments of the true cost of living, as published price indices only look at data in retrospect, so may increase only months later. ]
Expert answered|dkecter|Points 50|
Question
Asked 11/18/2012 2:10:51 PM
0 Answers/Comments
Get an answer
New answers
Rating

There are no new answers.

Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
27,038,463 questions answered
Popular Conversations
To derive energy from food, you must eat foods that contain ...
Weegy: To derive energy from food, you must eat foods that contain carbohydrates, proteins, and fats. User: Which of ...
6/16/2017 2:08:12 PM| 1 Answers
The evolution of agricultural practices ultimately led to the ...
Weegy: The evolution of agricultural practices ultimately led to the development of towns and cities.
6/23/2017 10:56:18 AM| 1 Answers
Earth’s lithosphere is composed of a. the crust only. b. the mantle ...
Weegy: The LITHOSPHERE is the part of the Earth composed of the crust and upper mantle.
6/25/2017 1:50:09 AM| 0 Answers
Radioactive isotopes are used to a. determine the absolute age of ...
Weegy: Radioactive isotopes are used to determine the absolute age of rocks.
6/25/2017 1:43:13 AM| 0 Answers
Magma that hardens vertically underneath the surface will form a ...
Weegy: Magma that hardens vertically underneath the surface will form a sill. FALSE.
6/25/2017 1:22:58 AM| 0 Answers
The ADA states that a service animal can be any animal that the ...
Weegy: The ADA states that a service animal can be any animal that the passenger deems a service animal and must be ...
6/25/2017 12:55:37 AM| 0 Answers
Waves that cause the most damage during an earthquake are waves.
Weegy: Waves that cause the most damage during an earthquake are surface waves.
6/25/2017 12:53:18 AM| 0 Answers
Which of the following would be considered a negative side effect of ...
Weegy: Threats of dangerous flooding would be considered a negative side effect of settling near a river bed.
6/23/2017 11:35:22 AM| 0 Answers
Most scientists and anthropologists agree that early humans first ...
Weegy: Most scientists and anthropologists agree that early humans first emerged in AFRICA.
6/23/2017 10:53:42 AM| 0 Answers
A paragraph that has its topic sentence first is _____. a rectangle ...
Weegy: A paragraph that has its topic sentence first is an inverted triangle.
6/23/2017 10:25:31 AM| 0 Answers
Desert plants are often widely spaced due to competition for ...
Weegy: Desert plants are often widely spaced due to competition for rainwater. TRUE.
6/23/2017 10:16:15 AM| 0 Answers
Weegy Stuff
S
L
Points 40 [Total 1381] Ratings 0 Comments 0 Invitations 4 Offline
S
Points 17 [Total 17] Ratings 0 Comments 7 Invitations 1 Offline
S
Points 10 [Total 10] Ratings 0 Comments 0 Invitations 1 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
R
Points 3 [Total 19] Ratings 0 Comments 3 Invitations 0 Offline
S
Points 3 [Total 3] Ratings 0 Comments 3 Invitations 0 Offline
S
Points 2 [Total 2] Ratings 0 Comments 2 Invitations 0 Offline
S
Points 2 [Total 72] Ratings 0 Comments 2 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
S
Points 1 [Total 1] Ratings 0 Comments 1 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.